Analyst Robert Ohmes of Bank of America Securities maintained a Buy rating on Kroger Company (KR – Research Report), retaining the price target of $75.00.
Robert Ohmes has given his Buy rating due to a combination of factors that highlight Kroger Company’s strong market position and growth potential. One of the primary reasons is Kroger’s success in maintaining and growing its loyal customer base, particularly among middle-income households, which constitute a significant portion of its clientele. The company has achieved this by effectively delivering value through personalized promotions and competitive shelf prices, as well as increasing private label penetration to offer better value to customers.
Additionally, Kroger’s scale allows it to manage costs effectively, despite inflationary pressures and potential tariff impacts. The company’s buying power as the largest conventional supermarket in the US positions it well to mitigate price increases. Furthermore, Kroger’s Retail Media business, with its high margins, is expected to accelerate growth in 2025, providing strong support for long-term margin improvement. These factors, along with Kroger’s robust digital and in-store execution, underpin Ohmes’s confidence in the company’s ability to maintain its market share and achieve its price objective.
Ohmes covers the Consumer Cyclical sector, focusing on stocks such as AutoZone, Best Buy Co, and Costco. According to TipRanks, Ohmes has an average return of 9.9% and a 59.38% success rate on recommended stocks.
In another report released on March 11, Telsey Advisory also maintained a Buy rating on the stock with a $73.00 price target.
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